Louis Alexander CEO of SoMo.jpg
Image Source: Somo
Louis Alexander CEO of Somo

Member Article

Independent ratings agency confirms Manchester's property lending platform Somo pays investors +10% interest

The leading independent ratings agency for the alternative lending market, 4thWay, has analysed the latest data provided by Manchester property lending platform, Somo, and has revealed that the average interest rate paid to investors is 10.41%.

The new assessment, published this week by 4thWay, reveals that junior loans, in which an investor is second or third in line to receive their money back, currently earn an average of 11 per cent, while senior loans, in which investors are first in line, give back an average of 9.34 per cent.

In November 2023 4thWay rated Somo #1 for financial health among P2P lending companies, sitting above Folk2Folk and Kuflink. Following in depth and independent analysis, Somo was rated ‘exceptional’ by 4thWay in a report that highlighted Somo’s high property lending rates, zero capital losses, bad debt recovery processes and exceptional calculated risk-reward balance.

Last year, Somo was among the first property lending platforms to pass on successive base rate rises to investors, with returns reaching up to 13.2% in September.

Somo’s founder and CEO, Louis Alexander said: “We’re delighted to be offering investors consistently high rates of over 10% interest, thanks to our strategy of ‘slow and steady wins the race.’ Investors have always been attracted by our zero capital loss track record, and now it’s great to have a further third party validation of our exceptionally high rates, thanks to 4thWay.”

Somo provides short-term bridging loans over predominantly residential property in the UK. It is a second-generation family of lenders that over the last ten years has lent over £313 million across more than 1500 loans, giving investors a cumulative £27.4m interest to date. The firm is proud of its record of zero capital losses, meaning all investors have received 100 per cent of their capital investment. In 2023 the firm experienced 12% growth.

This was posted in Bdaily's Members' News section by Sarah Smith .

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